EX-12 5 a2204188zex-12.htm EX-12

Exhibit 12

 

LEGG MASON, INC. AND SUBSIDIARIES

Computation of Consolidated Ratios of Earnings to Fixed Charges

(Dollars in thousands)

 

 

 

Years Ended March 31,

 

 

 

2011

 

2010

 

2009

 

2008

 

2007

 

Earnings from continuing operations before income tax provision

 

$

365,197

 

$

329,656

 

$

(3,188,197

)

$

437,327

 

$

1,043,854

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

89,598

 

124,573

 

177,588

 

87,993

 

72,123

 

Interest on uncertain tax positions included in earnings operations before income tax provision(1)

 

2,559

 

1,700

 

5,217

 

1,232

 

(649

)

Portion of rental expenses representative of interest factor(2)

 

42,074

 

43,066

 

37,487

 

39,080

 

32,383

 

Earnings available for fixed charges

 

$

499,428

 

$

498,995

 

$

(2,967,905

)

$

565,632

 

$

1,147,711

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

$

92,157

 

$

126,273

 

$

182,805

 

$

89,225

 

$

71,474

 

Interest expense included in interest expense not related to third party indebtedness(1)

 

(2,559

)

(1,700

)

(5,217

)

(1,232

)

649

 

Portion of rental expense representative of interest factor(2)

 

42,074

 

43,066

 

37,487

 

39,080

 

32,383

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Charges

 

$

131,672

 

$

167,639

 

$

215,075

 

$

127,073

 

$

104,506

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated ratio of earnings to fixed charges

 

3.8

 

3.0

 

(13.8

)

4.5

 

11.0

 

 

(1)                                  The portion of interest related to uncertain tax positions is excluded from the calculation.

(2)                                  The portion of rental expense representative of interest factor is calculated as one third of the total of Rent, Marketing Data Services, Maintenance, DP Service Bureau and Equipment Rental expenses.